Midwest Enterprises made the following entry on December 31, 2012. Interest Expense 10,000 Interest Payable 10,000 (To
Question:
Interest Expense 10,000
Interest Payable 10,000
(To record interest expense due on loan from Anaheim National Bank)
What entry would Anaheim National Bank make regarding its outstanding loan to Midwest Enterprises? Explain why this must be the case.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (10 reviews)
December 31 Interest Receivable 10000 Interest Revenu...View the full answer
Answered By
Sufiyan Ahmed Tariq
I am a Chartered Accountant and an Associate Public & Finance Accountant. I also hold a bachelors of Commerce degree. I have over 8 years of experience in accounting, finance and auditing. Through out my career, I have worked with many leading multinational organisation.
I have helped a number of students in studies by teaching them key concepts of subjects like accounting, finance, corporate law and auditing. I help students understanding the complex situation by providing them daily life examples.
I can help you in the following subject / areas:
a) Accounting;
b) Finance;
c) Commerce;
d) Auditing; and
e) Corporate Law.
4.90+
7+ Reviews
17+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
Midwest Enterprises made the following entry on December 31, 2020. Interest Expense................................10,000 Interest Payable.................................10,000 (To record interest...
-
Selanne Enterprises made the following entry on December 31, 2008. Interest Expense..........................................10,000 Interest Payable...........................................10,000...
-
Chen Enterprises made the following entry on December 31, 2019. What entry would Hibernia Bank make regarding its outstanding loan to Chen Enterprises? Explain why this must be the case. Interest...
-
Suppose that in a wave of pessimism, housing prices fall by 10% across the entire economy. a. Has the stock of real assets of the economy changed? b. Are individuals less wealthy? c. Can you...
-
Selected vertical percentages of the base amount from Waubon Corp.'s vertically analyzed income statement are shown below. Instructions Based on the above vertical percentages, did Waubon's profit as...
-
George has 50,000 ijn wages, 20,000 in gambling winning,10000 in alimony income and 5000 in dividend income. What is the amount of george income subject to withholding ?
-
Test for cross-section dependence for the Gasoline example (as in problem 13.4). Do the same for the Public Capital example. What do you conclude? Data From Problem 13.4: For the Grunfeld example,...
-
On March 1, 2014, Quinto Mining Inc. issued a $600,000, 8%, three-year bond. Interest is payable semi-annually beginning September 1, 2014. Required Part 1 a. Calculate the bond issue price assuming...
-
How do Lean Management principles integrate with other organizational frameworks, such as Total Quality Management (TQM) and Agile methodologies, to create synergistic approaches for achieving...
-
Arthur, CPA, is auditing The Home Improvement Store as of December 31, 2018. As with all audit engagements, Arthurs initial procedures are to analyze the entitys financial data by reviewing trends in...
-
(a) How are the components of revenues and expenses different for a merchandising company? (b) Explain the income measurement process of a merchandising company.
-
Distinguish between cash-basis accounting and accrual-basis accounting. Why is accrual-basis accounting acceptable for most business enterprises and the cash-basis unacceptable in the preparation of...
-
Mary paid $2,000 of state income taxes in 2015. The total sales tax she paid during 2015 was $5,500, which included $3,000 for the cost of a new car. How should Mary treat the taxes paid on her 2015...
-
Define longitudinal and lateral strains.
-
Define air conditioning. State the basic component of air conditioning systems.
-
Define velocity coefficient, speed ratio, flow ratio, and jet ratio.
-
Define linear, superficial and volumetric strain.
-
Define air-conditioning. Classify the air conditioning system in detail.
-
An internationally renowned professor specialising in management accounting has agreed to conduct a one-day seminar at a university for management executives. The Head of the Graduate School...
-
Research corporate acquisitions using Web resources and then answer the following questions: Why do firms purchase other corporations? Do firms pay too much for the acquired corporation? Why do so...
-
Most people who commit fraud are under financial pressure. (True/False)
-
Describe the accounting entry for a stock dividend, if any. Describe the accounting entry for a stock split, if any.
-
Stock splits and stock dividends may be used by a corporation to change the number of shares of its stock outstanding. (a) What is meant by a stock split effected in the form of a dividend? (b) From...
-
The following comment appeared in the notes of Colorado Corporations annual report: Such distributions, representing proceeds from the sale of Sarazan, Inc. were paid in the form of partial...
-
Explain possible advantages and disadvantages of PSL's current international trading strategy (subsidiary in China, export & import and online presence).
-
In November 2020 you entered into four May 2021 long futures contracts for crude oil (1,000 barrels per contract) for $65.00 per barrel. If the futures price was $70.00 per barrel on December 31,...
-
4) Champagne, Inc., had revenues of $13 million, cash operating expenses of $9 million, and depreciation and amortization of $2 million during 2008. The firm purchased $650,000 of equipment during...
Study smarter with the SolutionInn App